Devising South African solutions for local issues was the focus at the launch of the Mpumalanga Fourth Industrial Revolution (4IR) Digital Hub in Nelspruit yesterday (26 January).
The 4IR Incubator (4IRI), a nationwide institution that supports young tech entrepreneurs, created the hub to support local small, medium and micro enterprises (SMMEs).
Established in partnership with the Department of Small Business Development and public-based development funder Small Enterprise Development Agency (Seda), the hub will focus on developing drone technology, cybersecurity, advanced engineering, artificial intelligence, biotechnology, and networking.
Naomi Musi, CEO of 4IRI, says the hub is designed to be an accelerator that serves businesses and communities within Mpumalanga.
“The ministry and Seda have played an integral part in establishing the hub so as to bring skills to communities in the province and cultivate strong tech SMMEs that can uplift the region’s economy.”
Stella Ndabeni-Abrahams, minister of small business development, says the hub is a positive step towards creating an inclusive digital economy and curbing joblessness in the province.
According to Statistics South Africa, Mpumalanga has an unemployment rate of 45,4%.
“We are in the midst of building a new economy based on the ideas from the Presidential Commission on the Fourth Industrial Revolution,” says Ndabeni-Abrahams. “4IRI is leading this charge by helping bright entrepreneurs create innovative technologies and in developing new skills for the country’s workforce.”
4IRI established its first incubator in Cape Town in 2018. Since then, it had opened up centres in Johannesburg, Nelspruit and a drone academy in Secunda.
For businesses to be part of the incubator, they would need to meet a number of criteria, the most crucial being that the ability to develop technologies that uplift South Africa’s communities.
Sivuyile Zwedala, 4IRI’s funding manager, says that when assessing an applicant, the incubator looks at how innovative a business’ idea is. “Our tech experts draw up a report on the merits of the applicant. They talk about whether or not their idea is ground-breaking and how the product would fit in the market.”
Zwedala and his team then assess the financial viability of the business. “I sit down with our team of financial experts and evaluate the business, looking at the industry in which it exists and its competition.”
While profitability is an important criterion, it is not the deal-breaker. “As an incubator, profitability is not as important. A viable business is not only profitable but one that can repay and scale upwards.”
Musi is exploring new criteria for the incubator so as to attract more black women inventors. “I believe world-class solutions can come out of South Africa and particularly from black women. Private sector and government need to have more confidence in black women and the skill sets we have here.”
The incubator currently works with the likes of the French Embassy, Russian Business Council, Singapore Business Council and the Chinese-Africa Trade Council to create trade links and exposure for its SMMEs.